“GATA” DO MORE TALK ABOUT GOLD

CLICK HERE LARGE PRINT EDITION: “GATA” DO MORE TALK ABOUT GOLD « Culture of Life News 2

Dance I performed in 1980, The Golden Vortex

The GATA people caught up with my little discovery of the formerly-secret Federal Reserve memo of 1961.  The debate over the nature of gold continues, at least, online.  Whenever established financial systems collapse, we get these necessary debates.  Over and over again, the debate is declared dead and gone, forever.  This is due to academics teaching each other, the standard story line.  Instead of a spirited debate, we get this flattened landscape where everyone agrees.  But this changes rapidly when the academic status quo collapses like it is doing right now, all around us.

 

GATA’s Tenth Anniversary: Gold Manipulation Evidence Mounts

This week marks GATA’s tenth anniversary of our efforts to expose the manipulation of the gold market. In another few weeks we will mark the tenth anniversary of my appearance on CNBC (interviewed by Ron Insana) … the first and last GATA appearance on the US TV media to date … for once they heard what GATA had to say, we have been blackballed ever since. It also marks a shameful period for the US financial market press, which is now clamoring for answers as to how we ever got in the financial market/banking mess we are presently facing. For that answer they ought to first look at themselves and their dismal way of kowtowing to the rich and powerful, and banning those who are willing to challenge the Orwellian grip on what Americans are allowed to hear and know….

 Meanwhile, in GATA’s tenth anniversary year, we are making our own call for CHANGE, and are pressing on. Obama has stated over and over again he wants THE PEOPLE to be represented and asked us to give him input. Who has more pertinent input go get to him than our camp? Therefore, we are asking everyone interested in a free gold market to make a renewed effort to further disseminate our decade’s worth of evidence of gold market manipulation into the public domain by contacting the financial market media and to others in the Obama transition team (if you have any contacts).

I know how frustrating it has been to get the jaded financial market media to listen to, and then acknowledge, what we have to say, but that was yesterday and perhaps times have changed due to the growing financial market crisis, and yearning to understand how we got here. After all President-elect Obama is urging for “government accountability” and “transparency.”

This call to arms has been instigated by the dramatic and sudden discovery of an important document buried in the Federal Reserve’s archives by writer and researcher Elaine Supkis. This document is posted on her blog at:

http://emsnews2.wordpress.com/2009/01/15/1961-top-
secret-fed-reserve-gold-exchange-report/

This queer memo is slowly provoking a storm.  Storms start very small, a depression that deepens and grows until it is a hurricane.  And the words in this analogy are chosen deliberately.  We are in a vortex and it is deepening and growing.  Trying to comprehend what is going on is most important.  It is now so obvious, even famous professors who get room to bloviate in the major media, are finally aware of it.    

 

There are several schools of thought about the role of gold vis a vis, banking.  Even professors admit that the very first banks and all major banks until 1971, used gold as the basis of lending money.  Of course, during revolutions and wars, governments issue first, bonds, then IOUs that can be redeemed and then finally, paper money that is to be exchanged in lieu of gold.  Namely, you can buy a horse or loaf of bread but you can’t go to a bank and get gold with the paper money.

 

Hyperinflation happens when people try to exchange paper IOUs for bread or horses but have to keep offering more and more.  If their is a gold coin economy running alongside this paper inflation, the price of horses or bread remain the same if one is using gold coin.  The way governments took care of this, was to make the circulation of gold coins USELESS.  Not illegal, but useless.  

 

You can’t go into a bank with a gold coin and have it weighed and then get paper money in exchange.  If I took my $2 gold coin which is worth well over $100, to a bank, they will give me only $2 in paper if they even accept it at all.  The US, in 1961, allowed trade partners and the people we rescued from Nazis to go to Fort Knox with the paper money we took to Europe in the Marshall Plan and they could get gold.  The price of gold was artificially controlled while the US let out a tsunami of paper money during and after WWII.  The Europeans were very sly and happily dug out lots and lots of gold, exchanging very debased dollars for gold which price was set during the Great Depression when there was no inflation.

 

GATA’s Tenth Anniversary: Gold Manipulation Evidence Mounts

What is profoundly disturbing about the discovery of this confidential document is it fits in with much grander conspiracy theories than where GATA is coming from. Since this document, based on what has happened, really is a blueprint for market manipulation since 1961, it feeds into the worst fears of those who are constantly on the case about the Bilderbergers, Council on Foreign Relations, Trilateral Commission, and so on. This document to William McChesney Martin, Jr. is EXACTLY what I have been seeing and reporting over the past decade … not that much different than those who pointed out the Madoff Ponzi scheme during the same period of time. To learn that this market deception and manipulation was conceived when I was a freshman in high school is almost beyond comprehension, especially since the Wall Street crowd hasn’t permitted a serious discussion about it ALL THIS TIME! Nor has our government allowed a true independent audit of US gold reserves since the Eisenhower Administration in 1955.

It also feeds right into the scary notion revealed in a famed President Clinton comment that goes something like … “I didn’t realize I wouldn’t be in control here when I became President.” … meaning there were far more powerful background forces pulling the strings and on how he must operate.

The lack of an audit is disgusting.  Recently, the Bank of England did an audit of the gold due to the need to sell it to support the collapsing pound.  The gold bars were found to not weigh the amount imprinted on the bars in a great number of cases.  The entire lot must be melted down and refined and then, reweighed.  Not that anyone is going to do this to Fort Knox any time, soon.

 

The people in the GATA organization are doing a worthy thing: demanding an accounting and a debate.  The ruling elites dislike this a great deal since paper values are more useful than correct accountings.  We see that, after the Bank of International Settlements in Switzerland demanded a ‘Mark to market’ valuation of paper, this triggered a total collapse of the entire banking system.  Not because the accounting was evil.

 

It was because the paper pile was worthless.  All that ‘valuable’ paper, when no one was buying it, became worthless when only 1% of this mess was put on the market.  Originally, the plan was to increase the size of the mark-to-market’s public arm and to thus, reassure investors, the paper was really so valuable, people would bid UP the price, when it was offered for sale.

 

The exact opposite happened: the value of these various tranches collapsed.  AAA ones fell by 75% and Aaa ones fell by 94% and the BBB ones collapsed a terrifying 99%.  These were worth less than a Confederate dollar was worth in 1866.  Here is a good read from a good site:

 

Jesse’s Café Américain: The Last Time the Feds Devalued the Dollar to Save the Banks

We dipped once again into the Federal Reserve Bulletin Publication from June, 1934 to take a closer look at the growth of the monetary base, and found an interesting graphic that shows the accounting for the January 1934 devaluation of the dollar and the subsequent result on Bank Reserves in the Federal Reserve System.

As you will recall, the Gold Act, or more properly Executive Order 6102 of April 5, 1933, required Americans to surrender their gold coinage and certificates to the Federal Reserve Banks by May 1, 1933. There were no prosecutions for non-compliance except one benchmark case which was brought voluntarily by a person who wished to challenge the act in court….

Considering that all gold coinage held by banks in the vaults was automatically seized, the voluntary compliance rate is not all that impressive. We are not sure how much of this was being held in overseas hands by non-US entities.

But beyond a doubt, there was a unjust, if not illegal, seizure of wealth by requiring citizen to turn in their gold to the banks, which was then revalued at the beginning of 1934 by 69% from 20.67 to 35 dollars.

It would have been much more equitable to devalue the dollar and to change the basis for dollar/gold first, before requiring private citizens to surrender their holdings. But of course, this would have lessened the liquidity available for direct infusion into the Federal Reserve banks.

 

Just for comparison, here is the TOTBORR graph from the Federal Reserve.  Note how similar it is to the above graph.  Obviously, it is tracking a similar collapse in the banking system.  Only, we don’t have the gold factor here anymore.

 

 

And now, on a lighter note, an email from Michael Ax, talking about Libra and Gold:

Elaine,  reduced to symbols in the matrix of Ohms Law, Libra is

                                                                         Fiery Intuition
     Earth by Air  ( as in your prodigal output )  ==observed as==   ————————
        Sensate Reason                                                   Watery Emotion

while Gold, aka Leo, aka the Sun, aka the Center of Gravity , aka The Gold Standard (even invented by Newton if Turk is right) is

                                                                         Fiery Intuition
       Fire of Water ( as in zero point boiling )  ==observed as==   ————————
         Conscious Feeling                                                Bright Reason

As it turns out Libra belongs to the 8 of 12 facets of Ohm in which division aka ‘balancing over’ plays a role. Its distinguished by being the eternal delivering Sensate, that is Verifiable Reason into the world! That is huge already. Underneath the 4 elements however are the 4 operations and Libra does not actually represent ‘/’  division or the square root any more than, Sagittarius, Scorpio, Gemini or Taurus represent ‘*’ multiplication or ‘^2’ squared.

These functions / factions might be upset if you subsumed them into Libra!

            Virgo  =  Earth of Water ==  Bright Reason / Irrational Sensation

            Capricorn = Earth by Fire == Bright Reason / Watery Emotion

            Aquarius = Air of Earth  ==  Bright Reason / Fiery Intuition
            Pisces = Water of Earth == Fiery Intuition / Watery Emotion ^2
          Aries = Fire by Earth ==  Fiery Intuition ^2 / Irrational Sensation

  Cancer = Water by Fire == Square Root of ( Fiery Intuition / Irrational Sensation )

       It might be worthwhile to note that The Fallen, and the mechanisms by which they seek immortal wealth and representation are represented by Aquarius. Incidentally this is why Libra understands and is able to expose and regulate their higher minds! See here:

              Leo = Fire of Water  ==  Fiery Intuition / Bright Reason
            Aquarius = Air of Earth  ==  Bright Reason / Fiery Intuition

These two are mortal / eternals in the perpetual struggle of Warmth vs Brightness. They are Gold vs Money made by Computers and while each of them uses division, partitioning, compartmentalization and balance in their own way, neither of them are Libra proper. Aquarius might seem a strong Ally to Libra yet its intentions are negative in that it uses what Libra produces to make its own rules!

LIBRA IS NOT GOLD.  If we want to make a relation, we could say it’s the mind, the sibling and the lover of Gold. They share temperament and style but Libra is about context while Gold tempers analysis.

With kindest regards!

Sincerely,
Michael Ax

Libra is a queer thing: gold is heavy, the scales of justice are weighed with a feather which is very light.  When I was hit by lightning, one of the most nightmarish things I experienced was feeling the sensation of a light feather and a heavy lump of metal being one and the same.  This sensation made me feel as if I was being crushed while flying apart a the same time.  It is the essence of dual nature.

 

The nature of Libra is very simple: fools and their money are soon parted.  Fools and their gold are soon parted.  If one wishes for gold to grow, it has to be the heart of the banking system whereby it is the basis of TRADE.  Not lending for  mortgages, EARTH, not metal, is the basis of that.  Heh.  I hope readers add onto this amusing series of equations.  What is particularly amusing to me is, the very word, equation, is Libra.  The Goddess of Equals.  All things have to end up equalling zero.  

 

A statement, incidentally, that is very ‘widdershins’.  Full of contradictions within itself.

 

EMAIL ADDRESS:

emeinel@fairpoint.net

 

MAILING ADDRESS:

EMS NEWS

P.O. BOX 483

BERLIN, NY 12022

Make checks out to ‘Elaine Supkis’

CLICK HERE TO DONATE TO THIS WEBSITE